AXTLA FRUIT PROCESSING PROJECT - MEXICO SYNOPSIS te propose dla peda yee cis aaa staan Luis ‘otosi, Mexico, to process tropical the 4. PRODUCTS ‘The main products to be processed are citrus juices wit ‘orange which will be processed into pasteurized single strength frozen blocks. Grapefruit, mandarins and lemons will also be processed but as for the tropical fruits such as guava, litchi, mango and papaya, only in moderate quantities. Citrus oil, citrus essence and peel drying is also incorporated. 2. CAPITAL } — Land and Buildings e Plant and Machinery - Total $18 335 311 ‘These are estimates on which substantial savings are expected to be made. 3. CORPORATE SHARE STRUCTURE a i. Keen interest has also been shown from local farmers in the area to invest in the project. Equity in the project has been restricted to 10% of the capital requirement initially ‘The due diligence study shows a 5 year pay back period and an internal rate of retum to the investors of 72%. 4, PLANT AND MACHINERY ‘The recommended equipment is largely designed and manufactured by FMC via the Italian, Scandinavian and American offices and includes the leading edge technology as to premium pulp extraction, pasteurized citrus block freezing and evaporation. The proposed facility has been designed to provide a differentiated, high quality, blended broad range of citrus juices and tropical pulps into a highly competitive international market via the existing, 6, MANAGEMENT The services of a number of experienced professional managers and technical experts are available who has been involved in this sector of the food processing industry at executive level for many years.EXECUTIVE SUMMARY AXTLA FRUIT PROCESSING PROJECT ‘The executive summat a comprehensi ligence study for the establishment illion at Axtla De Terrazas, Mexico, The international citrus industry has reached the maturity phase of its product life cycle. The supply and demand factors are finely balanced and new and expanding market opportunities exist, but are fiercely competed for by many producers primarily from Brazil and Florida, in the USA . ‘A number of events in recent times have significantly influenced the supply of citrus as a commodity to the intemational market. Consumer preferences have changed to ‘not from concentrate’, unadulterated citrus juices as close to the natural fresh juice as possible. New technology maximizing the extraction of free floating pulp while still maintaining the freshness through a unique block freezing process has just been developed and tested. The need for maintaining the tunadulteration of the citrus juice can be achieved through selective blending. re abundantly avaiable, yet nd utilized citrus fruit creates the opportunity of addressing the new market gaps in to provide high acidic citrus concent Mexican facility and to shoulder the marketing and selling responsibility of all ‘export products from them. well positioned to provide and inter of an atchar relish form green mangoes and the dehydration of floeless mango cheeks, The citrus processing design allows for the maximum flexibility in supplying high quality premium pulp, pasteurized unadulterated frozen single strength juice. The proposed plant will also include a concentration, oil andIt is envisaged that t year of operation ani 1 A pay back period of § years is envisaged. The projected annual tumover 1's and shows an after tax ‘feaches a maturity level of $ 22.3 million after 5 years and lion from its first year. The indications are that the project can ». At a capital funding level of 10% of the total capital requirements, the project has an intemal rate of return to its Principals of 72%. ‘The proposed project is a sound investment proposal which has the ability to grow at a higher than normal rate provided the following comes to fruition:~ The Thalwitzer Trust or an invé substance with vested interest in the industry becomes co-sponsor and a principal in the proposed ventureUSA Gulf Of Mexico Tamaulipas Cludad Victoria Alamo PozaRica Martinez de la Torre Veracruz City Veracruz Figure 1. Map Of Citrus Production Areas in Mexico